Section 129 of CGST Act, 2017— Goods in Transit  –--- The petitioner challenged the order dated 20th August, 2019, which had been passed under Sub-section (1) of Section 129 of the Act, as well as the appellate order dated 28th November, 2019. The Counsel for the petitioner submitted that Section 129 has been invoked because in the description of the invoice, the petitioner had escaped to refer the alphabetical figures, which was given therein and all other details are not in quarrel. The court observed that implications of Clause 5 of the Circular of 14th September, 2018, has to be rationally and logically construed and when the revenue was conscious, that a minor error may creep in while furnishing the e-way bill and those minor discrepancies are to be overlooked and Section 129, is not to be even invoked invariably, under all the circumstances. The court further observed that looking to the nature of the error, which has crept in, in the instant case, since it was not backed with a clever intent to deceive the State of the revenue, and particularly, when the other figures or entries provided by the petitioner were correct, hence, the error which has crept in giving the invoice number would fall to be within an exception Clause 5 of the Circular of 14th September, 2018.

Held that—The Hon’ble High Court quashed the impugned order dated 20th August, 2019, and the appellate order dated 28th November, 2019. The amount of penalty already deposited is directed to be refunded.